Optimal Operation for Community-Based Multi-Party Microgrid in Grid-Connected and Islanded Modes

Abstract

Microgrid is regarded as the future power system configuration, which can be operated by connecting to the bulk power grid, as well as in stand-alone mode for serving microgrid loads during failures of upstream grid. This paper proposes a business model for operating the community-based multi-party microgrid, which involves critical loads and generators of multiple owners. Different from most operational microgrids with single owner of critical loads and on-site generators, the community-based multi-party microgrid discussed in this paper presents different structure and thus unique operating goals. An iterative bi-level model is proposed to simulate the interaction between the community microgrid operator (named as mini-ISO) and multiple parties for deriving good enough market clearing results during the microgrid’s normal operation status. On the other hand, a centralized energy management model is proposed to simulate the microgrid operation during major disruption events with limited generation resources and competing needs from multiple owners’ critical loads. Numerical simulations evaluate the effectiveness of the proposed operation framework for the community-based multi-party microgrid.